Troubled Interstate Bakeries Corp., in bankruptcy since September 2004, early today said it is closing four bread bakeries in Southern California.

The closings will eliminate 1,300 jobs, which besides those in the bakeries, include jobs impacted by route consolidations. Interstate, the maker of iconic Hostess Twinkies, will continue to make and sell snack cakes in Southern California.

In midday over-the-counter trading, Interstate Bakeries shares were up 10 cents, or 9.09 percent, at $1.20.

The company said the pullout was due to lower-cost, non-union competitors, and irrational pricing,

Those factors, combined with high fixed costs, have continued to make the market unprofitable for the Kansas City based baking company, one of the largest in the U.S., and also the maker of Wonder bread.

Because of the impact on employees and their families, exiting a market is probably the most difficult decision a company can make, Chief Executive Officer Craig Jung said in a news release. At the same time, our primary consideration has to be the companys long-term survival and financial health.

Just had some here in FL. The taste difference between them and the vanilla version is subtle - they didn't use enough banana flavoring.

Too bad, really. Never cared for the vanilla version - too bland. And these are too. My wife, who tolerates bland better than I, didn't care for them either. Never had one, of either flavor, deep fried. Not excited enough about the prospect to exert the effort.

In short, you're not missing anything.

19
posted on 08/28/2007 2:34:50 PM PDT
by surely_you_jest
(I don't make jokes. I just watch the government and report the facts. - Will Rogers)

Disclaimer:
Opinions posted on Free Republic are those of the individual
posters and do not necessarily represent the opinion of Free Republic or its
management. All materials posted herein are protected by copyright law and the
exemption for fair use of copyrighted works.